A study of Foreign Investments in Indian E-Commerce And Its Effects on Retail Industry

Abstract

This article highlights the key investments of foreign institutional investors into Indian e-commerce companies over the last decade (2008-18) and explains the impact of these investments on the lndian retail industry. It starts with an overview of the key online & offline players in the Indian retail industry across three large categories - electronics, apparels and groceries. That is followed by a walk-through of important milestones for the on line organizations over the last decade in terms of investments, expansions and mergers & acquisitions along with a highlight of the key foreign investors who catalyzed these activities. The article then moves on to the impact of these activities on the overall retail landscape in India and how it has affected other allied industries (such as warehousing & logistics). The article concludes with the author's commentary on future prospects of the Indian retail industry and what can be expected in the next 10 years. This article is intended for students who would like to get a better understanding of an emerging industry (e-commerce), academicians wanting to explore its growth & impact and working professionals interested in better understanding or switching their careers towards ecommerce. The article is built upon research data from government sources (such as FDI inflow data), author's own experience in the e-commerce industry, balance sheets & quarterly/annual results of retail companies & investors and sectoral analysis papers from consulting firms.